ID :
32724
Fri, 11/28/2008 - 10:04
Auther :
Shortlink :
http://m.oananews.org//node/32724
The shortlink copeid
Local banks slash interest rates
Hanoi (VNA) - A number of commercial banks have slashed their lending interest
rates, promptly reacting to the State Bank of Vietnam 's decision to reduce the
prime interest rate.
This move, made in the context of the global economic crisis having a direct
impact on export markets, is a measure designed to stimulate consumption and give
a boost to domestic production.
The Bank for Investment and Development of Vietnam (BIDV) was the first to follow
suit by reducing its annual lending rate to 13 percent immediately after the
central bank's decision, easing businesses' access to credit.
Following BIDV, a number of large banks, including the Bank for Foreign Trade of
Vietnam (Vietcombank), the Agricultural and Rural Development Bank (Agribank) and
the Vietnam Industrial and Commercial Bank (Vietinbank) offered even more
attractive rates of 12 percent per year, 4.5 percent lower than the ceiling rate
stated by the SBV.
This rate will be extended to their special clients, including exporters,
agro-forestry-fishery producers and other prestigious clients.
In addition to the reduction in lending rates, state-owned commercial banks also
cut their deposit interest rate by 2-3 percent per year.
Not being left out, several joint stock banks also announced a decrease in their
lending rates, though their reductions were more modest, with cuts of between 0.5-2
percent per year.
The Sai Gon Thuong Tin Bank offered lending rates ranging from 14-16 percent per
year, the Lien Viet Bank - 14.5 - 16.5 percent and the An Binh Bank is offering
interest rates of between 15.5-16.25 percent.
However, pundits say that these new rates are not radical enough to stimulate
domestic consumption and production, suggesting that they make further cuts to
deposit interest rates to 10 percent and reduce their lending rates to 12-14
percent.
Tran Hoang Ngan, Vice Rector of the Ho Chi Minh City Economics University ,
said that the SBV should consider reducing the level of compulsory reserves for
commercial banks, helping them to lower interest rates and attract more
rates, promptly reacting to the State Bank of Vietnam 's decision to reduce the
prime interest rate.
This move, made in the context of the global economic crisis having a direct
impact on export markets, is a measure designed to stimulate consumption and give
a boost to domestic production.
The Bank for Investment and Development of Vietnam (BIDV) was the first to follow
suit by reducing its annual lending rate to 13 percent immediately after the
central bank's decision, easing businesses' access to credit.
Following BIDV, a number of large banks, including the Bank for Foreign Trade of
Vietnam (Vietcombank), the Agricultural and Rural Development Bank (Agribank) and
the Vietnam Industrial and Commercial Bank (Vietinbank) offered even more
attractive rates of 12 percent per year, 4.5 percent lower than the ceiling rate
stated by the SBV.
This rate will be extended to their special clients, including exporters,
agro-forestry-fishery producers and other prestigious clients.
In addition to the reduction in lending rates, state-owned commercial banks also
cut their deposit interest rate by 2-3 percent per year.
Not being left out, several joint stock banks also announced a decrease in their
lending rates, though their reductions were more modest, with cuts of between 0.5-2
percent per year.
The Sai Gon Thuong Tin Bank offered lending rates ranging from 14-16 percent per
year, the Lien Viet Bank - 14.5 - 16.5 percent and the An Binh Bank is offering
interest rates of between 15.5-16.25 percent.
However, pundits say that these new rates are not radical enough to stimulate
domestic consumption and production, suggesting that they make further cuts to
deposit interest rates to 10 percent and reduce their lending rates to 12-14
percent.
Tran Hoang Ngan, Vice Rector of the Ho Chi Minh City Economics University ,
said that the SBV should consider reducing the level of compulsory reserves for
commercial banks, helping them to lower interest rates and attract more
